SC issues show cause notice to govt on education service tax

The Supreme Court today issued show cause notice to the government regarding the five percent 'education service tax' introduced through the new budget last month.

Following preliminary hearing in a case jointly filed by Institutional Schools Association Nepal (ISAN), Nepal Law Society and Guardians' Association, a single bench of Justice Gauri Dhakal ordered the government to furnish clarification on the service tax.

The petitioners said the tax is unjustifiable and should be revoked. It also says the tax is against the constitutional provision that guarantees free education up to secondary level to every citizen.

The Inland Revenue Department issued notice to private schools, urging them to comply with the tax policy.

While the private school operators have opposed the service tax which they say will be an extra burden on guardians education minister Renu Yadav has repeatedly said the government would not revoke it.

source :: nepalnews.com Nov 02 08

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It seems reallly as if The petitioners said the tax is unjustifiable and should be revoked. It also says the tax is against the constitutional provision that guarantees free education up to secondary level to every citizen.. But policy for fee structure and services that even private schools can make for social benifit shold be onsidered well.